If you own multiple credit cards, you might be in debt. You can avail a debt consolidation loan from peer to peer lending companies to get over credit card debt.

Sudeep is an IT professional, owning three credit cards with different credit limits. Every month, his salary goes towards the payment of credit card bills, apart from home loan EMI and monthly household expenses. Most often, he fails to track the payment cycles of the credit cards and misses the payment within the due date. As a result, his credit cards are charged to exorbitant interest rates and late payment fee. He is neck deep in credit card debt. What he needs is a debt consolidation loan to make his life simpler.

What is a debt consolidation loan?

A debt consolidation loan is a fresh way out to refinance or clear out multiple loans with one single loan. In simple words, it means consolidating all your existing debts into one payment.

Why you need a debt consolidation loan?

  • It can help you to pay off all your debts at a low cost.
  • It can save you from keeping track of multiple cards, bills, EMIs and different payment cycles.
  • It can improve your credit score in the long run.

Where can you avail a debt consolidation loan?

Several banks and financial institutions offer a debt consolidation loan. However, given your poor credit history and failure to make timely credit card payments, they may not be willing to give you a loan. Even if they lend you money, it would be at a very high interest rate and with stringent guidelines.

But, don’t be disappointed. The peer to peer lending companies in India will offer you a debt consolidation loan, no matter what your credit score, income or amount of debt is.

What are the benefits of applying for this loan on a P2P lending portal?

  • Easy processing
  • Flexible interest rates based on an internal credit rating process
  • A large database of personal loan lenders
  • Transparent transactions, no hidden fee
  • Quick transfer of funded loans
  • Easy repayment through pre-determined EMIs